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curry-kevin27
Returning Member

Calculation of 1099-R's seems incorrect

In 2022, I took regular distributions from my IRA, which I understand are taxable as ordinary income. In addition, I rolled over a qualified HSA funding distribution (trustee-to-trustee) of 8,300 from the same IRA. I have and have entered the two 1099-R's from my IRA administrator reflecting these distributions. These appear to be correct as respects gross distributions and taxable amounts. The larger, regular, distribution 1099-R  has the "Taxable amount not determined" box checked on line 2b.

 

The product seems to be reducing taxable income by 8,300 incorrectly, inflation both federal and state tax refunds.

 

I've used turbotax many times, but tried two other sources to compare, both of which seem to calculate taxable income correctly.

 

Please review and advise why this product conflicts with others.

 

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1 Reply
ThomasM125
Expert Alumni

Calculation of 1099-R's seems incorrect

I believe what you mean is there were three transfers and they were all taxable, but one of them is not showing as taxable on your tax return. Often, this would be because there was a code "G" in box 7 of the Form 1099-R indicating the money was rolled over from a taxed deferred retirement account to another similar account.  I assume it is the HSA distribution that is causeing the trouble. Can you clarify was is in box 7 on that form? 

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